Real estate legal due diligence is conducted at the preparatory stage prior to the acquisition of an apartment or house. It constitutes an integral stage of the comprehensive legal services for real estate transactions.
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The lawyer’s role is to verify the developer or seller, the property itself, and the terms of sale, as well as to ensure the security of the transaction and the subsequent ownership of the property. DE-JURE Law Firm has extensive experience in the real estate sector and can assist in selecting a reliable developer.
A pre-purchase property inspection is a service available both in person at the DE-JURE office and online. A pre-purchase property inspection involves verification of the seller on the secondary market and, in the case of purchasing a new apartment, a detailed review of the developer, construction documentation, and the legality of the property alienation scheme. The subsequent stages of the comprehensive legal support services include:
Clients of DE-JURE Law Firm may engage the full range of services or select any individual service separately. If the transaction is planned in Odesa, a real estate lawyer can arrange a meeting with a notary at our office.
Most people do not buy or sell real estate often enough to fully understand all the nuances, intricacies, and potential pitfalls, or to anticipate every possible risk. Therefore, it is advisable to seek help from professionals. Unlike a real estate agent, whose goal is to find and sell property, a lawyer, who has no vested interest, can provide the client with fair and objective information. A pre-purchase property inspection helps identify potential issues with the property or confirm their absence. For example, it protects funds already invested in construction if there are doubts about the developer’s integrity. A lawyer can also identify in advance whether third parties (such as the seller’s relatives or previous owners) might have claims on the property. A competent real estate lawyer maintains objectivity and informs the client of all potential risks. In some cases, it is wiser to back out of a purchase now than to spend time, money, and effort resolving disputes later. By commissioning a pre-purchase property inspection, clients can protect themselves from fraud and minimize the risk of claims from third parties.
During the initial consultation, either in person or online, a real estate lawyer meets with the client to discuss their plans to purchase property on the primary or secondary market. The client is guided through the services offered and can opt for the full range of legal assistance or only the specific services they need. The client also provides any existing documents for the lawyer to review. The subsequent process depends on the scope of work, but typically, it is completed within three working days.
In the case of purchasing an apartment in a newly constructed building, the client shall inform the lawyer of the developer’s identity and provide all relevant documents received from the developer, including the sales scheme, terms and conditions of sale, and other informational materials. Shall any questions arise, the lawyer may request additional documentation directly from the developer or conduct an on-site review at the developer’s office. For a property inspection on the secondary market, the client shall provide the lawyer with copies of all legal ownership-establishing documents, including:
Furthermore, the lawyer shall review the seller’s personal legal documents, including marital status at the time of acquisition, in order to identify and assess any potential claims by third parties.
Since real estate due diligence services differ depending on whether a client is purchasing an apartment in a newly built property or on the secondary market, each situation should be considered separately. Accordingly, when a client purchases residential property on the secondary market, a lawyer conducts a comprehensive legal review of the property being transferred, including the following:
When purchasing an apartment in a newly built property, legal assistance during the construction process includes the following stages:
1. Verifying the developer and the construction project: examining the history and documentation of the developer itself and all companies involved in the construction process, including incorporation and permitting documents, ownership rights to the land plot, and other relevant documentation.
2. Searching public registers for any mortgages, seizures, or court proceedings related to the construction project, the developer, or other affiliated companies.
At the client’s request, the lawyer then analyzes the sales scheme used for this new building and the terms of the developer’s contract to ensure compliance with Ukrainian law. The key focus of this stage is the protection of the buyer’s rights and interests. The lawyer may propose amendments to the agreement and negotiate them with the developer.
Despite the current lull in the real estate market, there are still numerous listings from developers and sellers on the secondary market. As a result, buyers may encounter unscrupulous sellers or developers and risk losing their property in the future. For example, many new buildings are never commissioned; in the best-case scenario, the project is completed years later, sometimes with assistance from local authorities, while in the worst-case scenario, the defrauded buyer must rely on recovering part of their expenses through legal proceedings. Conducting legal due diligence before purchasing real estate protects the client’s rights and interests, ensures a secure acquisition, and guarantees safe ownership of the property in the future.
The exact cost of a comprehensive legal due diligence package for a real estate purchase can be provided during a consultation with a lawyer. Legal due diligence of a developer and its related companies costs UAH 3,500 and takes two working days. Analysis of the sales structure and contract terms is also priced at UAH 3,500 and is completed within two working days. A complete legal assistance package is priced at UAH 7,000 and takes three days. When purchasing an apartment on the secondary market, the review of the property documents, its ownership history, and verification of the seller is priced at UAH 3,000, with the same fee applying to the review of the purchase agreement and the analysis and negotiation of its terms. The total cost is UAH 6,000 and takes three working days. For an additional fee, the lawyer can attend the signing of the agreement at a notary. Prices are current as of the date of publication.
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